Financials: Bonds are currently 2 higher at 122’18, the 10 Yr. Notes 3 higher at 121’00, the 5 Yr. Notes 1 higher at 117’04 and the 2 Yr. Notes unchanged at 108’22.7. Dec. Eurodollars are presently 4 higher at 98.81. We remain short the Dec. Eurodollars which is currently at a 10 point loss ($250) and have a downside objective of 98.61. We also remain short the June 2 Yr. Notes and/or the 5 Yr. Notes with a downside objective of 108’12. As for June Bonds I remain cautiously bullish and continue to recommend being either short out of the money puts or long out of the money calls. The range of support and resistance for June Bonds remains 120’26 to 124’10.
Grains: Yesterday Beans were 12 higher, Corn 8 lower and Wheat 19 lower. Over night Beans were 8 higher, Corn about 2 higher and Wheat 8 higher. Yesterday’s Crop Progress Report showed: Corn 33 % planted vs. 22% a week ago and 50% for a 5 year average. Expectations were 32-38%. Beans were 6% planted vs. 3% a week ago and a 5 year average of 11%. All in all, no great surprises. We remain long out of the money calls and/or call spreads in July Corn. Yesterday we were able to buy July Wheat on a 20+ cent break. If you went long either take the short term profit or use a protective sell stop at 531’0. I still like the idea of going long July Beans on a sharp break. Support and resistance for July Beans continues at 1065’0 to 1135’0.
Cattle: Yesterday Live Cattle closed 12 higher to 22 lower depending on the contract month. The nearby June contract closed 22 lower at 81.87. We remain long June Cattle with a protective sell stop at 80.75. If the market trades above 83.35 either take profits or raise your sell stop to the 81.70 level.
Silver: July Silver is currently 40 cents higher at 13.51. This market may have once again broken out to the upside. I am admittedly on the sidelines having missed this last leg to the upside.
S&P's: June S&P’s are currently 3.00 lower at 900.00. This market is now slightly higher for the year. Yesterday we went short in the 888.00 area. I am using a protective buy stop at the 912.00 level which I have to admit is more risk than we usually take for this market. If the market trades below the 888.00 level I recommend lowering your buy stop to the 908.00 level. Support is currently the 872.00 level.
Currencies: As of this writing the Euro is 51 higher at 1.3421, the Swiss 22 higher, the Yen 14 higher and the Pound 192 higher at 1.5153. Over night my recommend stop for remaining short position in the British Pound was penetrated when the market traded above the 1.5050 level. The June Dollar Index is currently 37.5 lower at 83.74. I must admit the current slide in the Dollar is a bit beyond my expectations. I am on the side lines.